1. Please prepare depreciation schedules for both the Straight-line and Double Declining Balance methods based on the following information: Equipment was purchased on 1/1/1 (first year of business). The cost 36,500 with an estimated salvage of 1,500. The estimated life is 10 years. 2. Using the equipment purchased in problem #1 above, and assuming the company ues Straight-line (S/L) depreciation only, please prepare entries for the following disposal transactions. (good idea to show your work) a) Junked on 1/1/8 b) Sold on 1/1/9 for 13,000 c) Sold on 1/1/9 for 5,500 d) Traded in on 1/1/10. List price of new equipment is $45,000 Assume the following 2 cases for trade in. 1) Trade In Allowance (TIA) - 8,000 2) Trade In Allowance (TIA) - 2,500 10 $ 5,500 Deute Decling Balasa mered: Depreciation of .-1 De precedente 207 year Costot Asset Depreciation Depecabion Tepes vold 3.0 1 $36,500 2,300 $29,200 $33,360 907 55,840 2 $29,200 H6,489 30x $23,360 $4672 3 4956 204 53,739 $16,685 $11,960 201 $2990 5 201 6 $14,950 $1,900 59568 20. 99568 $7654 54123 $4948 7 $2391 $1914 1531 $1225 $480 204. S $7654 2014 9 $6123 43918 204 10 $4846 Answer for #1 Solve for question 2 because it's related to question 1 cost of cupent = $36,500 usefullike royears 91500 Salvage value 1 Straight line method Depreciation Expense per year Cost - Salus value useful life $36,500 - $1500 10 years $3,500 year. Depreciation ) Expense. canying value of tautyment (cost-Depreciation Expens) $33 poo $29,500 $26,000 $3500 $3500 3 $3500 $ 3.500 $22,500 $19 pod $ 3, SOD 5 $15.SOD $3,500 G $12,000 33,500 $8.50D $3,500 $3,500 $ 3,500 $5,000 9 $150D 10